Celidoni M., Dal Bianco C., Weber G. (2013).
Early retirement and cognitive decline. A longitudinal analysis on SHARE data. Marco Fanno working paper n. 174- 2013.
We use a new measure of cognitive decline that is highly predictive of the onset of dementia and can be computed in standard surveys where recall memory tests are administered to the same individuals over the years. Using SHARE data, we investigate the association between cognitive decline and years in retirement controlling for age, physical health, early life conditions and socio-economic status. We find a positive association and an even stronger causal effect. The evidence we produce confirms the ’mental retirement’ hypothesis and suggests its relevance for the onset of dementia.